The Budget promises that MSP premiums will be cut in half for British Columbians with annual family net incomes of up to $120,000 beginning January 1, 2018. The reduction was presented as the first step in a plan towards eliminating the MSP premiums entirely. The Budget also proposes raising the income threshold below which households are exempt from MSP premiums by $2,000. Individuals with an annual net income up to $26,000 and couples with two children and an annual net income up to $35,000 will be exempt from MSP premiums.

In order to benefit from this reduction, individuals will be required to register with MSP and apply for the reduction.